Extended ERP: The Next Frontier Kirk Teal, Partner Kirk Teal, Partner Salvaggio, Teal & Associates August 10, 2010

1. Extended ERP: The Next Frontier Kirk Teal, Partner Kirk Teal, Partner Salvaggio, Teal & Associates August 10, 2010

2. Evolution of Government Administrative Systems Era I Custom Developed Software 1970s Era II Packaged “Best of Breed” Software 1980- 1995 Era III “Core” ERP Systems 1996-2005 Era IV “Extended” ERP Systems 2005-Present NASACT 2010 Annual Conference

3. Core ERP Functionality • Financial Management • General Ledger and Budgetary Control • Accounts Payable • Accounts Receivable • Grant Accounting • Project Accounting • Cash Management • Cost Allocation • Asset Management • Procurement • Formal and Informal Bid Processes • Basic Contract Management • Basic Vendor Management Salvaggio, Teal & Associates

4. Core ERP Functionality (cont.) • Human Resources • Position Control • Personnel Administration • Payroll Administration • Benefits Administration • Time Reporting and Labor Distribution Salvaggio, Teal & Associates

5. Extended ERP Functionality • Financial Management • Grants Management • Project Management • Travel Management • Budget Development • Procurement • Catalog purchases • Vendor registration and self-service • Commodity maintenance • Automatic “pushing” of bid opportunities to vendor community • Materials and Inventory Management Salvaggio, Teal & Associates

6. Extended ERP Functionality (cont.) • Real Estate Management • Fleet Management • Facilities Management • Transportation/Linear Asset Management • Human Resources • Applicant Services • Employee Self-Service • Learning Management Salvaggio, Teal & Associates

7. Drivers for Extended ERP • Funding shortfalls and early retirement incentives continue to require state government to “do more with less” • Greater accountability and compliance requirements being placed on state government • Software providers are bundling ERP modules with aggressive pricing • These modules have been “public sector enabled” and successfully implemented by state governments • Allows state governments to improve efficiency by eliminating legacy systems currently providing these functions and decreasing maintenance of automated interfaces Salvaggio, Teal & Associates

8. Grants Management • Development of funding requests to grantor agencies • Online receipt of grant applications, scoring, and awards to sub-recipients • Supports federal letter-of-credit drawdown and other billing methods • Tracking of required performance measures, post-award administration, and grantor/grantee reporting Salvaggio, Teal & Associates

9. Project Management • Provides lifecycle management and accounting for internal and external projects • Provides tools for a project manager to monitor contracts and control the change order process • Allows for specific information concerning a project to be maintained (e.g., correspondence, permits, insurance, disputes and claims) • Facilitates accumulation and capitalization of costs for projects crossing fiscal years Salvaggio, Teal & Associates

10. Travel Management • Allows State employees to be paid quicker by submitting expense reimbursements through automated means • Provides ability to automate travel policies providing complete authorization, approval and reimbursement processes • Automatically enforcing the State’s policies concerning expense rules, preferred vendors and other controls Salvaggio, Teal & Associates

11. Budget Development • Provides a flexible platform to support efficient budgeting, “what if” analysis, and forecasting • Supports development of Operating Budget • Supports development of Capital Budget • Potential to support development of Statewide Transportation Improvement Program (STIP) with extensions • Integrated with Financial Management modules for budget execution • Supports presentation and publication of the budget Salvaggio, Teal & Associates

12. Procurement • Catalog procurement • Internal • External (Punch-out) • Contract administration • Automatic “pushing” of bid opportunities to vendors that service specific commodities • Vendor self-service • Register online • Maintain authorized data elements (e.g., commodities they service, contact information, etc.) • View the status of transactions (e.g., PO issued, goods received, invoice received, payment requested) Salvaggio, Teal & Associates

13. Materials and Inventory Management • Supports commodity code management, stockroom inventories, warehouse inventories, and stock replenishment, and stock issuance activities • Statewide item master • Tight integration with Procurement and Financial Management modules (e.g., eliminates need to enter POs and receipt information in both Inventory and Procurement modules) • Use of bar coding to maintain inventory • Standardized stock numbers for all agencies • Allocates inventory costs to programs and organizations • Processes automatic inventory replenishments via the Procurement modules Salvaggio, Teal & Associates

14. Real Estate Management • Supports management of real property assets • Streamlines and automates lease administration and space management • Supports acquisitions and disposals • Potential to support a state DOT or other State agencies’ right of way acquisition process with extensions Salvaggio, Teal & Associates

15. Facilities Management • Combines property and building maintenance • Provides maintenance budgeting, including deferred maintenance (i.e., capital budgeting) • Online maintenance/service requests • Establishes preventive maintenance schedules and maintains maintenance history • Integrates with Procurement, Financial Management and Human Resources modules • Provides a work order system, including the capture of labor efforts • Allows scheduling of resources for jobs in advance, based on job requirements Salvaggio, Teal & Associates

16. Fleet Management • Single statewide application for managing the State’s vehicles • Motor pool vehicle reservation, dispatch and approvals • Agencies complete maintenance requests online • Agencies able to track vehicles assigned to them • Provides capability for managing heavy equipment depending on specific vendor offerings • Fleet management integrated with Procurement, Financial Management and Human Resources functions • Assists in warranty tracking and recovery of cost Salvaggio, Teal & Associates

17. Transportation/Linear Asset Management • Provides full lifecycle management of point assets (e.g. signs, signals) and linear assets (e.g., roads, bridges, guardrails, etc.) • Maintenance planning – defects, conditions, performance, reporting and analysis • Maintenance scheduling – work order processing and preventative maintenance • Day cards – labor, equipment, and materials • Needs identification to feed into capital program planning Salvaggio, Teal & Associates

18. Applicant Services • Supports the entire recruiting process for vacant positions • Agencies can post job descriptions and requirements online • Allows employees and external candidates to search, view, and apply for jobs online • Applicants can submit applications and resumes online Salvaggio, Teal & Associates

19. Employee Self-Service • View pay stub, W-2, and withholding information • Change basic employee information (e.g., address change) • Change benefit options (during open enrollment period) • Check leave balances and request time off • Check status of travel reimbursements • Register to attend a training course Salvaggio, Teal & Associates

20. Learning Management • Provides ability to create online course catalogs • Automates the advertisement, registration, delivery, tracking, and reporting of all learning opportunities throughout the organization • Provides for employee self-enrollment and for automated management approval • Provides integration with Applicant Services for skills and knowledge updates to State applicants for completion of qualified training events Salvaggio, Teal & Associates

21. Questions Kirk Teal (512) 630-5689 kirk.teal@staconsulting.net Salvaggio, Teal & Associates